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Private enterprise vs. government-owned

I love cars.

What I love the most about cars is, cars represent independence: An individual with a car at their disposal is free to go anywhere they please, whenever they please, unfettered. All they need is a driver’s license and a full tank of gas. You may not even have to know how to drive, if you can avail yourself of a willing licensed driver. No need to look up mass-transit schedules or routes (unless your trip involves a ferry). No need to get tickets in advance.

Owners of 2016 Hyundai Elantras have at their disposal hundreds of technological and safety features – from paint quality to power steering to traction control systems – at a price that is lower than the annual median U.S. salary, that were not available to the purchaser of a 1930s Bugatti, which only the very rich could afford. The Bugatti’s buyer wouldn’t even have been able to imagine the Elantra’s many features, and the fact that it can be serviced most anywhere in the free world. The Elantra is one sweet ride.

Why is that? Competition: Hundreds of car makers marketing their products in the United States and around the world, competing for the consumers’ favor. A consumer economy beats a command economy, all the way.

I was thinking of this while writing yesterday’s post at my blog on the Venirauto.

What the hey is a Venirauto?, you’re probably asking. The Venirauto is a car manufactured by the Iranians exclusively for the Venezuelan market, now that nearly all foreign car manufacturers have left Venezuela once the government insisted that they could not be paid in U.S. dollars.

Venirauto is 51% Iranian and 49% Venezuelan, 100% government-owned.

Putting aside the extensive and aggressive Iranian presence in Latin America, a subject that ought to be of great concern but goes mostly ignored, the Venirauto embodies a command-driven economy:

Francisco Espinoza, president of Venirauto group, “Our achievement is based on inspiration given by our late commander, Hugo Chavez. He wanted Venezuela to ally with Iran, and we’re doing so.”

The first model, the Turpial at a price of Bs. 17 million (US$7,906), is a 4-door sedan based on the old Kia Pride model. The second is the Centauro, at a price of Bs. 23 million (US$11,069), and is based on the Peugeot 405 given that the French firm is the main supplier of engines and technology to the Iranian company.

Don’t expect to find those two in Kelley’s Blue Book Top 10 anytime soon: The Peugeot 405 was introduced on 1987 and, according to Wikipedia, is still produced under license in Iran and Egypt but ceased production in France in 1997. The old Kia Pride (not to be confused with the Kia New Pride) was in production from 1987 to 2000. In effect, the Venezuelans, who get government-subsidized gasoline almost for free, can now drive technology nearly thirty years old.

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